China Loan Strategy: China is progressing rapidly in its land grab strategy by giving loans. Till now many countries have become its target and now another country is not able to repay the loan.
China Could Seize Land in Montenegro Photo – Twitter
China Could Seize Montenegro’s Land: So far many countries have been trapped in the debt trap of China and now another country has a similar condition. Montenegro, a small European country, appears unable to repay China’s $1 billion loan it had taken for the Belt and Road project. A big highway was to be built with this money, which has been built only for some distance. But now after Sri Lanka and Maldives, Montenegro is also unable to repay the loan.
Montenegro will have to pay all the money taken from China, if it is not able to do this then it will go bankrupt and China will occupy its land (Montenegro Loan). According to the report of Daily Mail, it is surprising that China’s state-owned company China Road and Bridge Corporation is associated with this project and workers have been called from China for the bridge which is being constructed. The work on the first section of the highway leading to Belgrade in Serbia is yet to be completed. This highway will be of 270 miles.
debt twice the GDP
Montenegro has to pay the first installment of one billion dollars this month but it is not clear whether it will be able to pay the money. Currently Montenegro has a debt of more than twice its GDP (CPEC Loans to Countries). According to the terms of the agreement with China, if it is not able to repay the loan on time, then China has the right to occupy its land. Apart from this, the former government of Montenegro has agreed to settle the entire dispute related to this agreement in a Chinese court.
China’s terms are irrational
In May, Montenegro’s deputy PM Abjovic called the terms of the agreement absurd. He told Euro News, ‘This is not normal. It is beyond any logic of national interest. There is a lot of debate in Europe about this agreement. In which it is being said that the influence of China on Europe is increasing. China is attracting debt to poor countries through its ambitious Belt and Road project (China’s Influence on Poor Countries). Under which he promises to improve their substandard infrastructure, but grabs their land if the loan is not paid.
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